Countries with friendly tax laws regarding crypto assets

Governments of many countries can not resist the temptation to get tax collections from the crypto-currency income of their citizens. However, several states agree to grant certain benefits to the crypto community, promoting the development of new technologies in the long term. Such countries offering tax incentives are found in different regions of the world:

Germany

This economic locomotive of Europe has a very cautious approach to regulating crypto currency. Last month, the Federal Ministry of Finance issued a statement that Bitcoin is regarded as a currency, so when exchanging it for Fiat it will not be necessary to pay taxes, as well as long-term investments in crypto currency. If the user sells Bitcoin more than a year after his purchase, the profit is exempt from taxation. The same applies to annual profits of less than 600 euros. Purchases paid in Bitcoins are subject to VAT, like any other.

 Slovenia

The capital gain of ordinary investors acquiring crypto currency is not taxed, and they are not required to report it in their tax returns. Nevertheless, individuals who receive income in the crypto currency are required to declare digital money and pay income tax. The country uses a progressive tax scale and rates range from 16% for incomes of less than 8,000 euros per year to 50% for incomes in excess of 70,000 euros.

Denmark

The tax authorities of Denmark require the payment of taxes only from fi nite companies, in accordance with the rules of taxation existing for business. Private investors trading in cryptography do not pay tax on their income.

 Belarus

The most favorable environment for crypto-currency investors, both corporate and private, has been created in this country. Since March, cryptomayning and ICO have been legalized in the country. Tax holidays for crypto-currency revenues were introduced by the government for a period of five years.

 South Korea

At this time in the country, profits from crypto-currency transactions are still not taxed. The Ministry of Finance and the tax authorities in Seoul are working on new legislation, which, perhaps, will change the situation already in the second half of this year.

Singapore 

Digital currencies in Singapore are not considered a commodity and are not recognized as a currency and the income from investing in them is not taxed. But this applies only to private investors. Companies that trade in crypto-currencies must pay taxes for their profits. Many countries are still thinking about updating their tax legislation to cover the crypto-currency market, and some are trying to adjust the old one for these purposes.